Sovereign fund return tops 11%

The China Investment Corporation (CIC), the country’s sovereign wealth fund, said on Tuesday it made a return of 11.7 percent on its global investment portfolio in 2010.

The rate was unchanged from that of 2009, reversing losses in 2008 when the rate was a negative 2.1 percent, CIC said in its third annual report.

The fund’s investment return totaled $55.39 billion last year, while its net profit jumped to $51.56 billion from $41.66 billion in 2009.

CIC said the average investment return since its founding in 2007 was 6.4 percent.

As of the end of last year, CIC’s global investment portfolio, which consists of assets such as cash and equities, was worth $135.1 billion.

By the end of 2010, CIC’s global investment portfolio comprised of 4 percent of cash or cash equivalents, 48 percent of equities, 27 percent of fixed income securities and 21 percent of alternative investments.

CIC diversified its portfolio last year, increasing investments in sectors such as property markets and infrastructure, spokesman Wang Shuilin said.

The fund also boosted its investments in emerging market countries, Wang said.

The CIC was founded in September 2007 with a registered capital of $200 billion from China’s huge foreign exchange reserves.

Global Times

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